Cooper Companies Stock Outlook: Is Wall Street Bullish or Bearish?
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San Ramon, California-based The Cooper Companies, Inc. (COO) is a medical device company with a market cap of $15.9 billion. It develops, manufactures, and markets contact lenses that address various vision conditions such as astigmatism, presbyopia, myopia, and ocular dryness. In addition, the company provides a range of medical devices and surgical instruments, primarily used by gynecologists and obstetricians to support women's health.
This healthcare company has underperformed the broader market over the past 52 weeks. Shares of COO have fallen 18% over this time frame, while the broader S&P 500 Index ($SPX) has gained 9.8%. Moreover, on a YTD basis, the stock is down 13.7%, compared to SPX’s marginal loss.
Narrowing the focus, COO has also lagged behind the SPDR S&P Health Care Equipment ETF’s (XHE) 7.1% downtick over the past 52 weeks and 8.7% decline on a YTD basis.
On Mar. 6, COO delivered its Q1 results, and shares of the company plunged 12.6% in the following two trading sessions. Its revenue of $964.7 million grew 3.6% from the year-ago quarter, with both CooperVision and CooperSurgical sales up compared to the year-ago quarter. Moreover, its adjusted net income per share climbed 8.2% year-over-year to $0.92, supported by a 6.5% increase in adjusted operating income to $241.9 million. Stronger adjusted gross margin and adjusted operating margin further supported the earnings growth.
For the current fiscal year, ending in October, analysts expect COO’s EPS to grow 7.9% year over year to $3.98. The company’s earnings surprise history is promising. It topped or met the consensus estimates in each of the last four quarters.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 11 “Strong Buy,” and five “Hold” ratings.
This configuration is less bullish than three months ago, with an overall “Strong Buy” rating.
On Apr. 16, Mizuho Financial Group, Inc. (MFG) maintained an “Outperform” rating on COO but lowered its target to $105, which indicates a 32.3% potential upside from the current levels.
The mean price target of $108.50 represents a 36.7% premium from COO’s current price levels, while the Street-high price target of $125 suggests an ambitious upside potential of 57.5%.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.